Inversions — or tax maneuvers that reward U.S. corporations that declare themselves overseas residents to avoid paying taxes in America — have been in the news a lot lately, because more than 50 percent of these deals have happened in the past five years. And will cost ordinary Joe and Jill Americans nearly $20 billion over the next decade — critical dollars that could grow and expand our middle class.
Here’s the bottom line: When corporations invert and pay less in taxes, other working Americans have to pay more to help fund the services we all rely on. (Like maintaining the roads and bridges they use to bring their products to market, equipping our schools with the resources they need to educate/train a base of potential employees, and equipping our military to protect their ability to conduct business not just in the US, but across the globe — just to name a few.) Most working Americans don’t have access to fancy accounting tricks — and parasitic corporations shouldn’t be able to stuff their pockets by using such tricks at our expense.
But if that isn’t already beyond the pale, Corporations that have already inverted are getting $1 billion a year in federal contracts, according to Bloomberg News. Clearly, they’ll do everything they possibly can to be less American when it’s time to pay their taxes, but they’ll claim to be more American when it comes to scoring lucrative government-funded projects. And what they’re not paying? Well those funds end up picked from our pockets when we, as ordinary Americans, pay our taxes.
What the Treasury Dept has done is essentially the equivalent of sticking a finger in a leaking dyke. Congress needs to act to eliminate #Inversions and to hold Corporations accountable for pay their fair share. Currently, two bills have been introduced and are sitting in Committee: HR5278 in the House, and S2704 in the Senate. Each bill has been introduced by a Democrat and NO Republicans have signed on as sponsors. It is well past time that we insist they STOP rewarding parasitic corporations that choose to desert America. These companion bills titled, the No Federal Contracts for Corporate Deserters Act, would bar parasitic “inverted” corporations from getting U.S. government contracts once they change their corporate address to avoid U.S. taxes. The 113th Congress is coming to a close and we need to pressure Congress to pass a No Federal Contracts for Corporate Deserters Act BEFORE the closing gavel on the 113th Session.